How could it work for you?
The story goes that each day somewhere in Africa a gazelle wakes up knowing that if it’s to survive it must outrun the fastest lion .
Each day, somewhere in Africa, a lion wakes up
knowing that if it’s to survive it must outrun that gazelle.
And therein lies the need for flow
By linking and synchronising the output of each Process with the next, flow Manufacturing shrinks lead-times down from weeks or days to work content times of hours or minutes.
Traditional batch-and-queue, push production is invariably driven to an inherently inaccurate internal forecast. What gets planned often doesn’t happen.
Flow Manufacturing is driven by actual customer demand. Parts and materials flow seamlessly through the production process. What gets planned actually happens and meets or exceeds customer expectations.
The flow tool-set used is rather like a set of chess pieces. Each one is applied or moved in a defined way, but the variety of applications is infinite. They’ve been applied successfully from Pharmaceuticals to Nuclear Submarines.
Not only does this boost customer satisfaction through faster fulfilment and better on-time delivery, it releases cash from Working Capital embedded in “redundant” inventory.
Manufacturers have grappled with the same challenges for decades:
- How to respond faster to customer demand while keeping down costs and prices?
- How to meet rising global expectations for faster delivery of smaller quantities of more customised products?
- How to release cash into the business from “redundant inventory” embedded in Working Capital to help fund growth, expansion and innovation?
Typical answers focus on three areas: improve forecasting, increase work in progress and finished inventories, and improve distribution channel efficiency.
But as we know, each of these have limitations.
- Forecasts are inherently inaccurate. This often means having too much of what is not needed until the future, and not enough of what the customer needs now.
- More inventory can embed quite large quantities of cash in Working Capital. This adds to financing, storage and handling costs, while risking obsolescence and write-offs.
- Distribution channels will continue to improve of course, but so will those of the competition.
Our founder was a Nobel Prize nominated Laureate in Economics for Working Capital Management through faster response to customer orders. To know more on flow and its origins in Demand Flow Technology (DFT) follow the link:
Our founder was nominated for a Nobel Prize in Economics for Working Capital Management.
To know more about flow and its origins in Demand Flow Technology (DFT) click on this link to Wikipedia:
How to do flow Manufacturing for greater
Productivity – Profitable Growth – Cash Flow